EPFO Issues Over 1.49 Lakh Higher Pension Orders Post Supreme Court Ruling

What Happened

The Employees' Provident Fund Organisation (EPFO) has issued 149,806 pension payment orders (PPOs) to retired applicants who sought higher pension contributions. This action is in accordance with a November 2022 Supreme Court order.

The Supreme Court had directed the government to facilitate higher contributions to the pension scheme based on members' actual wages to enable them to receive enhanced benefits. The Minister of State for Labour & Employment, Shobha Karandlaje, informed the Lok Sabha that these PPOs were issued based on the apex court's ruling.

Key Facts

• The EPFO issued 149,806 pension payment orders for higher contributions to retired applicants.
• This follows a Supreme Court order from November 2022.
• A total of 1,524,365 claims were received for higher pension contributions based on actual wages.
• As of August 5, 11,595 of these claims remained pending.
• The total number of pensioners under the Employees' Pension Scheme (EPS) was 8,584,604 as of March 31, 2026.
• The total pension disbursed under EPS up to March 31, 2026, amounted to ₹15,819.28 crore.
• The EPS 1995 scheme has been superseded by EPS 2026.

Background

Under the standard Employees' Pension Scheme (EPS) framework, employers contribute 8.33% of basic pay, capped by a wage ceiling. The higher pension option enables eligible members to contribute based on their actual salaries and dearness allowance, moving beyond the standard ceiling. This can lead to a higher monthly pension as the calculation considers the average pensionable salary over the last 60 months.

What Happens Next

The government stated its commitment to ensuring robust social security coverage for EPFO scheme members while considering the sustainability of the fund and its future liabilities. The EPFO has also introduced changes regarding premature EPF settlements and withdrawal benefits under EPS, including waiting periods and simplified partial withdrawal options.